Re: Count me among the offended |
Subject: Re: Count me among the offended by CentralCoaster on 2010/8/5 19:14:48 Quote:
I agree, don't hate it just because Obama likes it. Quote: If these ppl all default (cause not important), that means the government now owns a shit load of real estate. It's not the business they want to be in. They also own real estate that isn't worth the notes value. So why not keep the ppl in their homes, and float a little love, versus get stuck with all these houses that can't be sold? If the government didn't want to be in real estate, Freddy and Fannie wouldn't exist to begin with. Regardless, there are ways to keep people in their homes without forgiving debt. The banks can refi these people into fixed rate 120% loans and the government can back the extra 20% or take a bite from future home values when it appreciates or is sold. Or the govt can create incentives for banks or 3rd parties to rent people's homes back to them with conditions for ownership. Or they can sit back and do absolutely nothing, including no giving handouts to failing banks. But the reason people default DOES matter. The reason banks fail DOES matter. Yes there are good people that are victimized also (who plans for a 40% drop in equity?), but if you start throwing money at stupid people, you remove incentive for good behavior. Then good people feel cheated and do a strategic foreclosure to get their share. People need to be accountable too. Anyone who defaults on a mortgage should never ever qualify for a future home loans until they pay back the debt. They can always rent. Renters don't fuck the economy when they bail on a lease. |